North America

The Iran war has triggered record oil refining earnings that are reviving the Big Oil business. Many investors had written it off. The sector is expected to deliver strong returns over the next few years. However, structural changes in oil demand will cause refining to lose its shine quickly. Refining is the least glamorous part of the oil industry, despite its critical role in the global supply chain. Western oil majors have been steadily retreating from the sector in the past 20 years, due to high operating costs, volatile margins, rising carbon costs, and increasing competition from state-backed refining companies...

?China has been viewed as the main driver of future LNG demand by producers for years. This helped justify billions in investment infrastructure from?the U.S. Gulf Coast up to Qatar. China's appetite is waning for super-chilled fuel, even though producers are preparing a new wave of supply in the coming years. This could undermine the viability of future projects that rely on long-term needs of imports from Asia and Europe. The Iran 'war' has triggered a second global LNG supply crisis in four years, following Russia's invasion of Ukraine?in 2022. This is reinforcing China's push to prioritize domestic gas, pipeline...

Energy markets are stuck in a limbo of uncertainty that is not easy to escape. Buyers are increasingly concerned about the reliability and security of Gulf supply, which is creating a new alarming norm for producers in the region. The energy sector in the Middle East is more vulnerable and weaker than ever before, five months after Israel and the United States launched their military attacks against Iran. Energy infrastructure is under attack, and shipping routes are becoming increasingly restricted. Importers are also avoiding supplies from the region which accounted for about a fifth in global oil -and liquefied natural...

Europe is less vulnerable to disruptions in energy supplies since the Russia crisis of 2022, but the region still faces a new threat: high energy costs that are destroying the industrial base on the continent. Europe has fared relatively well so far in the global energy crunch caused by the Iran War that began on 28 February. This is largely due to massive investments made in LNG terminals, mandatory storage, and an increased reliance on U.S. Liquefied Natural Gas. The price of?gas in Europe has risen but the region is not yet in crisis mode, like it was after Russia...

The energy supply in Europe is alarmingly vulnerable as conflicts in the Middle East, Russia and the Middle East tighten the global markets for heating oil and liquefied gas. This has pushed inventories down to dangerously low levels. According to official statistics, natural gas and heating oil make up the majority of Europe's residential heating. Gas accounts for approximately 30% of heating demand, while heating oil makes up roughly 10%. Both fuel markets are likely to be under extreme strain in Europe after years of energy shocks. Gas vulnerability in the region is largely a result of a dramatic?transformation in...

Europe is facing a "death Valley" of high energy prices over the next decade, which threatens to erode their industrial base even if they achieve their ambitious plan?to increase electricity consumption by 2040. The European Commission announced on Friday an Electrification Action Plan aiming to increase electricity's share in final energy consumption from 23% today to 48 % by 2040. An interim reference goal of 32 % by 2030 was set as an initial target. The strategy aims to accelerate electrification in transport, buildings, and industry. It also tackles one of Europe's largest energy paradoxes - electricity is often more...

Europe is facing a "death Valley" of high energy prices over the next decade, which threatens to erode their industrial base even if they achieve their ambitious plan to double electricity by 2040. The European Commission announced on Friday an Electrification Action Plan aimed to increase electricity's share of final energy consumption, from 23% to 46% in 2040. An interim reference target is 32% by 2030. The strategy aims to accelerate electrification in transport, buildings and industry while also tackling Europe's largest energy paradox -- "electricity can be more expensive than fossil fuels that policymakers would like consumers and businesses...

China surprised the oil industry during the Iran War, using powerful levers in order to protect itself from the "biggest shock" in energy for decades. It established itself as an independent, opaque and massive force on the global energy market. China's?measures to counter the energy supply shock - slashing crude imports, limiting exports of refined petroleum products and drawing from domestic stocks - culminated in decades long campaign to reduce heavy?dependence upon overseas energy supplies. This gives a hint at how future crises could unfold. China's assertive strategy may be a sign of a future where blind spots in the...

Venture Global, an American LNG producer, said that the average liquefaction fee in the second quarter was up?69% from the previous three months. This is due to the higher global LNG prices after the Iran War disrupted the supply through the Strait of Hormuz. According to a regulatory filing, the U.S. exporter of liquefied gas realized an implied weighted-average fixed liquefaction rate of $6.45 for?million British Thermal Units (MMBtu). This is up from $3.82 in the first quarter. Damage to Qatar's liquefaction plants curtailed LNG exports and sent LNG prices sharply higher. Venture Global's?weighted-average liquefaction charge reflects both the higher...

According to preliminary data on ship tracking from LSEG, for the first time in almost two years, less than half of U.S. exports of LNG last'month went to Europe. Stronger prices in Asia, and record imports to Egypt, diverted cargoes. This is the first time that Europe hasn't taken the majority of U.S. LNG exports since July 2024. European buyers who need to replenish storage before the winter season have been waiting for better pricing. Last month, Asian spot prices were higher than those in Europe. This encouraged exporters to reroute shipments to the east. LSEG data showed that the...

The looming Russian ban on diesel exports could not have come at a worse time. After the largest energy shock in decades and a dangerously low global fuel inventory, another supply cut could threaten to undermine a fragile recovery. Russian President Vladimir Putin announced on Sunday that the Kremlin is considering a ban of diesel exports, after acknowledging the mounting shortages in Russia. These shortages were triggered by Ukrainian drone attacks on Russian refineries as part of Kyiv's expanding energy campaign against Moscow during the fifth year the Ukraine war. Fuel is the mainstay of global economy, powering everything from...

A looming Russian diesel export ban could not come at a worse time. Fuel inventories around the world are at a dangerously low level, and another supply shock could undermine a fragile economic recovery. Russian President Vladimir Putin said on Sunday the Kremlin is considering a diesel export ban after recognizing mounting domestic shortages. These shortages were caused by Ukrainian drone attacks on Russian refineries as part of Kyiv’s wider energy campaign against Moscow in the fifth year the Ukraine War. Fuels with high energy density are used to power heavy transport, agriculture, industry, and construction equipment, from trucks and...

Cuba's electricity grid collapsed late Sunday night, according to the state-owned grid operator. This plunged a ten-million-person island into darkness, as blackouts are becoming more frequent. The island's energy infrastructure is being further strained by a U.S. oil blockade. In its posts on X or Facebook, the Union Electrica de 'Cuba did not provide any further information about the situation. Cuba is struggling to secure fuel imports, and this has increased the pressure on its power system. The country?lost its main source of fuel following an oil blockade by U.S. president Donald Trump after Washington ousted Venezuelan President Nicolas Maduro...

Serbia has received another waiver from the United States to allow its Russian-owned oil firm NIS to continue importing crude until August 28, said energy minister Dubravka Djedovic Handanovic on Friday. The U.S. Office of Foreign Assets Control has granted a waiver to NIS which operates Serbia's sole oil refinery. This will give NIS more time as Hungary's MOL oil and gas firm negotiates with the Russian majority share in the company. "Thirty-days is good news. NIS will have enough time to buy and bring in enough crude oil," Djedovic handanovic said during a live broadcast by state television RTS....

Chevron exceeded analyst expectations for second-quarter earnings?on Friday. It reported its highest quarterly profit for at least six-years as the U.S./Israeli war against Iran disrupted world energy markets and boosted?profits?for the largest oil companies. LSEG data shows that adjusted earnings of $12 billion or $6.06 a share beats the average analyst forecast of $5.56 a share. Chevron's shares rose about 2% during premarket trading. The results were similar to those of European oil giants TotalEnergies, Shell and others who also reported record profits in the second quarter. Higher oil prices were a major factor. ExxonMobil's quarterly profit missed analyst expectations...

Canadian pipeline ?operator Enbridge said on Friday it was ?postponing the 250,000-barrel-per-day second phase of its Mainline crude pipeline ?network, partly due ?to Canadian oil ?producers ?not committing to significant output increases. The project would have led to an increase in the export of Canadian crude oil to U.S. refining plants. Enbridge CEO Greg Ebel stated that the company would focus on the 100,000 bpd Flanagan South Expansion and its 50,000bpd Southern Access Extension. These will increase capacity to two secondary pipelines which connect to the Mainline and transport crude to several U.S. refineries centers and the Gulf Coast. Ebel...

Two sources said on Friday that Tengizchevroil has resumed oil exports through the Georgian port of Batumi for the first time since March. Caspian Pipeline Consortium is responsible for more than 80% (of Kazakhstan's oil exports), with the majority of the oil coming from the Caspian field of?Tengiz and Karachaganak. Drone attacks and adverse weather conditions have forced the suspension of CPC. This has forced TCO to use alternative routes, which are more expensive. The consortium reported that the CPC halted crude oil deliveries on Thursday at its Black Sea terminal near Novorossiysk after a drone attacked tankers. Approximately 20,000...

Enbridge beat expectations for the second-quarter adjusted profits?on Friday as the Canadian pipeline operator benefitted from higher volumes of liquids transported through its Mainline system. Enbridge has been able to maintain steady growth despite geopolitical tensions, commodity price volatility and increased demand for utility infrastructure, natural gas and power for data centers. Its Mainline System, which moves almost half of the crude oil in the United States?reported a second-quarter core adjusted profit of C$1,57 billion ($1.12billion), an increase from C$1.5billion a year ago. The largest pipeline system in North America transports light and heavy crude oil, natural gases liquids, and...

On Thursday, the U.S. Senate voted to approve?the nomination?of David Cummins as the Transportation Security Administration's (TSA) head, as the Trump administration tries?to privatize _screeners at smaller airports. In April, President Donald Trump proposed cutting the budgets of the TSA, which has 60,000 employees, by more than 9,400 people and $1.5 billion or 20%. Next week, the final vote will be held. Serco provides engineering, IT and training services to commercial and federal customers. Trump has also suggested that smaller airports be required to use private security. This would reduce the TSA's payroll by over 4,500 jobs. It is a...

Enbridge was found liable for trespass by a U.S. court of appeals for putting a pipeline under land owned by a tribe in northern Wisconsin. However, the court gave Enbridge more time to move the pipeline or recalculate damages. The 7th U.S. Circuit Court of Appeals in Chicago addressed appeals from a federal district judge's June 2023 order that Enbridge pay the Bad River Band of the Lake Superior Tribe Chippewa Indians $5.15 million in restitution plus an additional sum for ongoing?trespass, and move pipeline within three years. Circuit Court of Appeals of Chicago heard appeals of a federal district...

The drone attack that damaged two gas tanks in?Egyptian water has raised energy security concerns over the nearby Suez Canal, and a pipeline related to it. This is a vital route for Saudi Arabian crude oil exports since the beginning of the Iran War. While Iran and its Houthi-allied allies fired on oil tankers passing through the Strait of Hormuz, and Bab el-Mandeb in Egypt, Egypt's Suez Canal, and Sumed pipeline, continued to provide a?safe, Northbound export route for Saudi Red Sea Energy cargoes. Although no one has publicly claimed responsibility for the attack on Wednesday against the tankers in...

Canadian pipeline operator TC Energy surpassed analysts' expectations for a?second quarter profit on Thursday. The growing demand for natural gas from industrial and power users in North America is a boon to pipeline operators. The adjusted core profit of TC Energy’s U.S. - natural gas pipelines, its largest segment, grew to C$1.22?billion in the second quarter, up from C$1.09 billion a year ago. Calgary-based company reports adjusted core earnings from Canadian natural gas pipelines of C$961 millions for the three-month period ended June 30. This is up?from C$923million a year earlier. The core quarterly adjusted profit for its "Mexican Natural...

According to an advisory dated July 29, London's'marine insurance' market has expanded 'the area it deems as high risk' in the Red Sea after attacks by Yemen's Houthi group on ships. However, Egyptian waters have been excluded. The Joint War Committee, made up of members from the London Insurance Company?Market and syndicate members, has a significant influence on insurance premiums. The advisory stated that the?high risk zone has been extended to include more of the coast along the Red Sea, adjacent to Saudi Arabian port cities. It also reaches as close as the Saudi port city of Jizan. The Iran-aligned...

Beetaloo Energy Australia announced on Thursday that it had signed a non-binding contract with oilfield services firm?Halliburton in order to help advance a proposal for a gas-to power and data center development in Australia's Northern Territory. Halliburton is providing technical expertise for Beetaloo?Digital to?assess gas resources and develop them. The project is focused on supplying?power?to hyperscale data centers and AI infrastructure. It's centered on a 185-hectare?site at?Weddell, near Darwin. Halliburton, according to Beetaloo Energy, could provide expertise in the areas of field development, drilling and project execution, as well as scalable gas-fired energy generation. Beetaloo Energy's Chief Executive,?Alex Underwood, described...